1:1 Bonus Issue: First-ever bonus for 69-year-old insurance giant LIC as shareholders approve share issue; check details

LIC Bonus Issue: Shares of Life Insurance Corporation of India rose was trading in red on Wednesday after the state-run insurance giant said that close to 22 lakh shareholders approved its proposed 1:1 bonus issue.

The stock climbed to an intraday high of Rs 805.5 on the NSE after the company informed exchanges that 99.9998 per cent of eligible shareholders voted in favour of the special resolution related to the bonus share issue and certain managerial appointments.

LIC first bonus issue since listing

The bonus issue, announced by LIC in April, marks the company’s first such corporate action since its stock market debut in May 2022. The insurer’s board had approved the issuance of one fully paid-up equity share of Rs 10 each for every one fully paid-up equity share of Rs 10 held by eligible shareholders.

The company said the bonus shares would be issued by capitalising up to Rs 6,325 crore from its reserves and surplus as of December 31, 2025. LIC’s reserves stood at nearly Rs 1.5 lakh crore at the end of the December quarter.

LIC had earlier stated that the bonus shares would be credited within two months from the date of board approval, which means the allotment is expected on or before June 12, 2026.

Record date yet to be announced

The insurer has not yet announced the record date for determining eligible shareholders. Only investors holding LIC shares as of the record date will receive the bonus shares.

A bonus issue involves distributing additional shares to existing shareholders at no extra cost by capitalising a company’s reserves. While the move does not alter the company’s market capitalisation, it increases the number of outstanding shares and is generally viewed as a sign of financial strength and confidence in future growth.

Market participants also believe the bonus issue could improve liquidity in the stock and make the shares more affordable for retail investors.

Stock performance ahead Of Q4 results

LIC shares have gained around 3 per cent over the past one week. However, the stock remains down 5 per cent over the last month and has slipped nearly 6 per cent so far in 2026. Over a three-year period, the stock has rallied about 42 per cent.

The company is now set to announce its January–March quarter earnings for FY26 on May 21. LIC currently commands a market capitalisation of more than Rs 5 lakh crore.

Since its listing, LIC has also declared five interim dividends, reflecting its continued focus on shareholder returns.